Divisions Emerge in Congress on Fannie, Freddie Overhaul

Mar 29, 2011 6:51 pm ET

By Alan Zibel and Jeffrey Sparshott

Divisions among U.S. lawmakers about how soon to overhaul the U.S. mortgage market emerged Tuesday, as Senate lawmakers in both parties cautioned against moving too fast, even as House Republicans introduced a slew of new bills that would start to overhaul the sector.

The divergent statements in Congress, even among Republicans, highlight the difficulty of passing legislation to replace government-controlled mortgage giants Fannie Mae and Freddie Mac anytime soon. The two giant mortgage buyers have been under federal control since September 2008, a rescue that has cost taxpayers $134 billion to date.

“Before we discuss solutions, we should first clearly identify the problems we are trying to solve,” Sen. Richard Shelby (R., Ala.) said at a Senate Banking Committee hearing. Shelby is the top Republican on the committee, which has jurisdiction over housing issues.

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